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2017 (9) TMI 750 - HC - GSTInterpretation of statute - Rule 96A of the Central Goods and Services Tax Rules, 2017 - Circular No. 4/4/2017 - Prior to the implementation of the Integrated Goods and Service Tax Act, 2017, there was no service tax on the export of services provided by the Petitioner. Post the IGST Act, the export services provided by the Petitioner are covered under ‘zero rated supply’ under Section 16(1)(a) of the IGST Act - In order to avail of the input tax credit, the Petitioner, being a new entrepreneur with an export turnover of less than ₹ 1 crore per annum, has to necessarily furnish a bond with a bank guarantee - Such a condition does not apply to an exporter with an annual turnover exceeding ₹ 1 crore. Quantum of Bond - Held that: - para 4 of the above Circular envisages that the bond has to be for a sum equal to the export tax liability. The question is, when it is ‘zero rated supply’, is there a necessity to furnish a bond with a bank guarantee? And if so, for what amount? - the Respondent states that he would have to seek a clarification on this aspect and requests for a short adjournment.
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